The impact of Better Work is assessed on costs, profits, productivity and business terms for firms in Vietnam, Indonesia and Jordan. Participation in Better Work has a positive productivity effect on Vietnamese and Indonesian firms. Productivity gains are captured by workers in the form of higher pay. Unit costs rise due to increased compliance with payment requirements such as the minimum wage, paying as promised and mandated promotions. Despite the increase in wages, profits for firms in Better Work Vietnam and Indonesia increase due to improved business terms such as larger orders and possibly an increase in price. The impact of Better Work Jordan suggests that exposure to the program for individual firms may have temporarily increased costs and lowered profits. However, the Jordanian apparel industry becomes more profitable over time, suggesting a positive country reputation effect. Participation in Better Work and firm performance are not jointly determined by manager quality. Early entrants into Better Work are, on average, high cost-low profit firms.
Read more
Discussion Paper 19: Survival of the Fittest – And Most Compliant
Cambodia, Discussion Papers
Discussion Paper 35: Better Work Beyond the Workplace
Bangladesh, Cambodia, Discussion Papers, Gender, Lesotho, Vietnam
Discussion Paper 12: Is There an Efficiency Case For International Labour Standards?
Cambodia, Discussion Papers
Discussion paper 21: The Interaction of Labour Inspection and Private Compliance Initiatives
Case Study, Discussion Papers, Indonesia
Discussion Paper 22: Training for supervisors: discussion paper on the impacts
Cambodia, Discussion Papers, Haiti, Indonesia, Jordan, Lesotho, Nicaragua, Training, Vietnam
Discussion Paper 9: Global Production Networks and Variegated Capitalism
Cambodia, Discussion Papers
Discussion Paper 23: Labour Compliance and Factory Performance
Business-related, Cambodia, Discussion Papers
Discussion paper 16: Sexual Harassment in the Workplace: How does it Affect firm Performance and Profits
Discussion Papers, Gender, Haiti, Indonesia, Jordan, Nicaragua, Vietnam
Discussion Paper 38: Sexual Harassment – Causes and Remediation
Discussion Papers, Gender, Resources for Cambodia
Discussion Paper 14: Sexual Harassment in Garment Factories: Firm Structure, Organizational Culture and Incentive Systems
Discussion Papers, Gender, Haiti, Indonesia, Jordan
Discussion Paper 1: Labour Law Compliance and Human Resource Management Innovation
Cambodia, Discussion Papers
Discussion Paper 25: Examining Barriers to Workforce Inclusion of Syrian Refugees in Jordan
Discussion Papers, Featured, Jordan
Discussion Paper 36: Automation, employment and reshoring in the apparel industry
Bangladesh, Cambodia, Discussion Papers, Egypt, Ethiopia, Haiti, Indonesia, Jordan, Nicaragua, Vietnam
Discussion Paper 18: Occupational Safety and Health Conditions in the Apparel Factories
Discussion Papers, Jordan, Vietnam
Discussion Paper 39: Is Social Compliance Win-Win for Workers and Firms? Evidence from Better Factories Cambodia
Discussion Papers, Resources for Cambodia
Discussion Paper 5: Does Better Labour Standard Compliance Pay?
Cambodia, Discussion Papers
Discussion Paper 29: Lights On: Transparency and Compliance – Evidence from Cambodia
Cambodia, Discussion Papers
Discussion Paper 31: Firm Compliance and Public Disclosure in Vietnam
Discussion Papers, Featured, Vietnam
Discussion Paper 13: Analysing Better Work Data from a Gender Perspective
Discussion Papers, Gender, Vietnam
Discussion Paper 7: Lesotho Clothing Workers’ Perceptions of What Makes Better Work
Discussion Papers, Lesotho
Discussion Paper 26: Does Piece Rate Pay Impact Perceived Occupational Hazards in Garment Factories?
Discussion Papers, Vietnam
Discussion Paper 27: The impact of Better Work – Firm performance in Vietnam, Indonesia and Jordan
Discussion Papers, Indonesia, Jordan, Vietnam
Discussion Paper 2: Excessive Overtime, Workers and Productivity
Cambodia, Discussion Papers, Haiti, Indonesia, Jordan, Lesotho, Nicaragua, Vietnam
Discussion Paper 28: Piece rate pay and working conditions in the export garment sector
Discussion Papers, Haiti, Indonesia, Jordan, Nicaragua, Vietnam
Discussion paper 17: Are Sweatshops Profit-Maximizing?
Discussion Papers, Vietnam
Discussion Paper 15: The Business Case Against Verbal Abuse
Discussion Papers, Indonesia, Jordan, Vietnam
Discussion Paper 10: Do Factory Managers Know what Workers Want?
Discussion Papers, Vietnam
Discussion Paper 37: Labour Standards Compliance in the Global Garment Supply Chain
Bangladesh, Cambodia, Countries, Discussion Papers, Haiti, Indonesia, Jordan, Vietnam
Discussion Paper 40: Impacts on the Shop Floor – An Evaluation of the Better Work – Gap Inc. program on Workplace Cooperation
Bangladesh, Cambodia, Discussion Papers, Indonesia, Resources for Bangladesh, Resources for Brands, Resources for Cambodia, Resources for Indonesia, Resources for Vietnam, Vietnam
Discussion Paper 3: Apparel Wages Before and After Better Factories Cambodia
Cambodia, Discussion Papers
Discussion Paper 30: An Impact Evaluation of Better Work from a Gender Perspective
Discussion Papers, Haiti, Indonesia, Jordan, Nicaragua, Vietnam
Discussion Paper 11: The Role of Variegated Capitalism in Vietnam’s Garment Sector
Discussion Papers, Vietnam
Discussion Paper 33 – Supporting Mental Well-being of Migrant Garment Workers in Jordan
Discussion Papers, Jordan
Discussion Paper 24: Wildcat strikes and Better Work bipartite committees in Vietnam
Discussion Papers, Featured, Vietnam
Discussion Paper 34: The Jordanian Garment Industry and Better Work
Discussion Papers, Jordan
- Category: Discussion Paper
- Publication: August 2018
- Series No: 27
- Author: Drusilla Brown; Rajeev Dehejia; Raymond Robertson